Apprenticeship incentives for employers: What funding could your business access?
Hiring an apprentice is a great way to bring new talent into your organisation, develop the skills your business needs and build a stronger workforce for the future. And with government incentives and funding available, it could be more affordable than you think. Depending on your business and the apprentice you employ, you could access thousands of pounds in financial support, alongside potential savings on National Insurance contributions.
At Skern Skills, we make apprenticeships simple. From understanding what funding you're eligible for to designing and delivering training around your organisation, we'll support you every step of the way. Here's a simple guide to the funding opportunities available to employers.
Funding for non-levy employers
If you're a non-levy paying employer, there are several incentives that could help you reduce the cost of bringing new talent into your business.
Up to £3,000 through apprentice hiring and new starter incentives
Employers taking on eligible young apprentices can receive a £1,000 apprentice hiring payment.
This applies when you employ:
An apprentice aged 16–18, or
An apprentice aged 18–24 with an Education, Health and Care Plan (EHCP) or who has been in local authority care.
There's also further support on the way for businesses employing young people.
From October 2026, eligible non-levy employers may be able to receive an additional £2,000 new starter incentive when employing a young person aged 16–24 who has joined the company within 90 days of starting their apprenticeship.
Together, these incentives mean an eligible new apprentice could bring up to £3,000 in financial support to your business.
An additional £3,000 through the New Youth Jobs Grant
There may be even more support available when employing an eligible young person.
The new Youth Jobs Grant offers £3,000 for eligible employees aged 18–24 who have been receiving Universal Credit for six months or more.
For businesses looking to create opportunities for young people while filling skills gaps, this can make recruiting and developing new talent even more attractive.
Save on National Insurance contributions
Employers may also benefit from a 0% employer National Insurance contribution rate for eligible apprentices aged under 25, on earnings up to £50,270 per year.
That means the financial benefit of hiring an apprentice isn't necessarily limited to an upfront incentive. You could continue making savings throughout their employment.
What could that mean for your business?
For an eligible non-levy employer and apprentice, the combination of the apprentice hiring payment, new starter incentive and New Youth Jobs Grant could provide up to £6,000 in potential financial support, alongside possible employer National Insurance savings.
Eligibility criteria apply, so it's important to understand which incentives are relevant to the individual you're looking to employ. That's where we can help.
Funding for levy-paying employers
If your organisation pays into the Apprenticeship Levy, you can use the funds in your apprenticeship service account to invest in apprenticeship training and develop new or existing employees.
But there are additional incentives available when you recruit younger apprentices, too.
£1,000 apprentice hiring payment
Levy-paying employers can receive a £1,000 payment when employing:
An apprentice aged 16–18, or
An apprentice aged 16–24 with an EHCP or who has been in local authority care.
This payment is in addition to being able to use your levy funds towards eligible apprenticeship training.
National Insurance savings
Just like non-levy employers, levy-paying organisations can also benefit from the 0% employer National Insurance contribution rate for eligible apprentices under 25 earning up to £50,270 per year.
For organisations recruiting apprentices at scale, these savings can add up and make apprenticeship programmes an even more cost-effective way to develop your workforce.
More than funding: invest in the future of your workforce
Financial incentives are a great reason to explore apprenticeships, but they're only part of the picture.
Apprenticeships give you the opportunity to bring new people into your organisation and develop their knowledge, skills and behaviours around the needs of your business. They can help you address skills gaps, create a pipeline of future talent and give employees clear opportunities to develop and progress.
At Skern Skills, we work closely with employers to understand their goals, culture and workforce requirements before designing an apprenticeship programme that fits. We'll also help you navigate the funding and administration, so you can focus on getting the most from your people.
Could your business benefit?
Whether you're a small business taking on your first apprentice or a levy-paying organisation looking to expand an existing programme, there could be significant financial support available.
Talk to the Skern Skills team today and we'll help you understand the funding you could access, find the right apprenticeship programme and take the next step towards building your future workforce.